U.S. Capitol Building (Yonhap News)

The U.S. Congress has demanded that the CEOs of JPMorgan Chase and Bank of America (BofA) appear before them regarding their involvement in facilitating the Hong Kong stock market listing of Chinese electric vehicle battery manufacturer CATL, the Wall Street Journal (WSJ) reported on the 23rd (local time).

The House Select Committee on the Chinese Communist Party (the "Select Committee"), which focuses on threats posed by China to national security, issued subpoenas to the CEOs of both banks on the same day, requesting information on the role the banks played in CATL's listing, according to the WSJ.

The issuance of these subpoenas is part of the committee's efforts to investigate the policy and regulatory implications of U.S. banks participating in the listings of Chinese military-linked companies.

The Select Committee had previously urged JPMorgan and BofA in April not to participate in CATL's listing, but both banks did not comply with the request.

The committee has warned that, given the U.S. Department of Defense has identified CATL as a company with ties to the Chinese People's Liberation Army, involvement in CATL's listing would pose "serious regulatory, financial, and reputational risks" to both banks.

Han-Mi Ilbo & Yonhap News